Inheriting property in Marbella could be less expensive than you think. Marbella Town Hall offers reductions of up to 95% on the Municipal Plusvalía Tax for qualifying inherited properties. For families passing a home from one generation to the next, this could significantly reduce the tax bill.
There are also separate inheritance tax benefits available across Andalucía. Qualifying close relatives can benefit from a 99% reduction in their Spanish Inheritance Tax liability, while certain inherited family homes qualify for an additional 99% reduction in taxable value.
However, these are different tax benefits, with different eligibility requirements. They do not automatically apply to every inheritance.
Whether you live in Marbella, own a holiday home on the Costa del Sol or are inheriting Spanish property from abroad, it is important to understand the rules before making decisions.
In this guide, we explain how Marbella’s Plusvalía reduction works, the inheritance tax benefits available in Andalucía, the deadlines you need to know and what you can do with an inherited property.
Can You Get Up to 95% Tax Relief When Inheriting a Property in Marbella?
Yes. Marbella offers a municipal Plusvalía tax reduction of up to 95% for qualifying inherited properties.
Plusvalía Municipal is officially known as Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU). It is a local tax relating to the increase in the value of urban land when ownership changes.
The tax can apply when someone inherits a property, even though no sale has taken place.
Under Spanish law, town halls can offer a reduction of up to 95% of the tax liability for certain properties transferred through inheritance to qualifying family members. Marbella has adopted this type of tax benefit.
However, the reduction is not automatic. The beneficiary must meet the conditions in the applicable municipal fiscal ordinance and follow the correct application procedure.
It is also important to understand that the reduction applies to the municipal tax liability, not the total market value of the inherited property.
How Does Marbella’s 95% Plusvalía Tax Reduction Work?
The municipal reduction is designed to help families inheriting residential property.
The amount of tax payable depends on several factors, including the increase in the taxable value of the urban land, the period of ownership, the applicable municipal coefficients and tax rate, and any qualifying reduction.
The cadastral value of the land is important when calculating Plusvalía. However, it is not the same as the property’s market value.
What are the reduction bands?
Marbella’s previously published municipal documentation has included the following reduction bands:
| Cadastral value | Previously published reduction |
|---|---|
| Up to €125,000 | 95% |
| Over €125,000 up to €200,000 | 50% |
| Over €200,000 up to €300,000 | 20% |
Important: These are historical published thresholds, not independently confirmed 2026 figures. Marbella’s 2026 Fiscal Ordinances include the IIVTNU regulations, but you should check the complete current provision with the Town Hall before relying on these bands.
The general legal basis for municipal inheritance reductions is Article 108.4 of Spain’s Local Finance Act.
A practical example: How could the reduction affect your tax bill?
Imagine a family inherits a property in Marbella and the calculated municipal Plusvalía liability is €2,000.
If the inheritance qualifies for a 95% reduction, the calculation would look like this:
| Item | Amount |
|---|---|
| Plusvalía before reduction | €2,000 |
| Reduction | 95% |
| Remaining tax payable | €100 |
| Total saving | €1,900 |
This is an illustrative example, not a calculation of an actual Marbella property tax bill. The cadastral value alone does not determine the amount of Plusvalía payable.
The example simply shows how a reduction on the tax liability can make a difference.
Who Qualifies for Marbella’s Inheritance-Related Plusvalía Reduction?
Not everyone inheriting property in Marbella automatically qualifies.
Spanish legislation allows municipalities to grant this type of reduction for certain inheritances in favour of descendants, adopted children, spouses, ascendants and adoptive parents.
Marbella’s own fiscal ordinance sets out the specific conditions that apply locally.
The property must meet the relevant habitual-residence requirements, and the beneficiary must fall within an eligible family relationship.
Does the property have to be the deceased person’s main residence?
Yes, the habitual-residence condition is an important part of the municipal benefit.
The published Marbella provisions refer to the property being the deceased person’s habitual residence up to the date of death and for at least the previous two years.
This means a holiday apartment, second home or investment property will not automatically qualify.
The beneficiary does not necessarily have to live in the property themselves. The relevant requirement concerns the deceased person’s residence.
What if several family members inherit the same property?
Where several beneficiaries inherit a property, each person’s legal relationship to the deceased and share of the inheritance should be considered.
The tax treatment can become more complicated if some beneficiaries qualify for a reduction and others do not.
This is one reason why families inheriting property together should obtain professional advice before submitting their tax declarations.
Our advice: Do not assume that the maximum reduction will apply simply because you are inheriting a family home. Ask a Spanish tax adviser to check the current municipal conditions, your relationship to the deceased and the property’s cadastral information.
Plusvalía vs Spanish Inheritance Tax: What Is the Difference?
One of the most common misunderstandings when inheriting property in Spain is the difference between Municipal Plusvalía and Spanish Inheritance Tax.
They are two separate taxes, administered under different rules.
| Municipal Plusvalía | Spanish Inheritance Tax | |
|---|---|---|
| Spanish name | IIVTNU | Impuesto sobre Sucesiones y Donaciones |
| What does it cover? | Increase in the value of urban land | Assets and rights received through inheritance |
| Who administers it? | The local town hall | The relevant regional tax authority |
| Relevant authority for Marbella | Marbella Town Hall | Junta de Andalucía |
| Potential benefit | Up to 95% municipal reduction | 99% bonification for qualifying close relatives |
You may have to deal with both taxes when inheriting a property in Marbella.
1. Municipal Plusvalía Tax
Plusvalía is a local tax that can apply when urban land changes ownership, including through inheritance.
The calculation is based on the taxable increase in land value and the applicable municipal rules.
There is also an important protection in Spanish law: where there has been no increase in the value of the land, the transaction may not be subject to Plusvalía. The taxpayer must provide the appropriate evidence.
For more information, see Articles 104–110 of Spain’s Local Finance Act.
2. Spanish Inheritance Tax in Andalucía
Inheritance Tax is paid by the person receiving the inheritance.
Andalucía offers significant tax benefits for qualifying family members.
For example, qualifying Group I and II beneficiaries, which generally include children, spouses and parents, can benefit from a 99% bonification on the calculated Inheritance Tax liability.
There is also a separate 99% reduction in the taxable base for qualifying inherited habitual residences.
These are two different measures and should not be confused.
Understanding Andalucía’s 99% Inheritance Tax Benefits
The Junta de Andalucía provides two particularly relevant benefits for families inheriting residential property.
| Tax benefit | What does it mean? |
|---|---|
| 99% bonification on the tax liability | Qualifying Group I and II beneficiaries pay only 1% of their calculated inheritance tax liability. |
| 99% reduction in the taxable base for an inherited habitual residence | Qualifying beneficiaries can reduce the taxable value of the deceased’s habitual residence by 99%, subject to additional conditions. |
Who qualifies for the 99% habitual-residence reduction?
Under Article 27 of Andalucía’s Law 5/2021, the qualifying beneficiaries include:
- The deceased person’s spouse.
- Ascendants, including parents.
- Descendants, including children.
- People legally treated as equivalent to these relatives.
- A collateral relative over 65 who lived with the deceased during the two years before death.
There is also a retention requirement.
The beneficiary must generally keep the inherited acquisition for three years after the death, unless they die within that period.
This is an important condition for anyone considering selling an inherited family home shortly after receiving it.
The full requirements are available in Article 27 of Andalucía’s Law 5/2021 and the Junta de Andalucía’s official inheritance tax guidance.
Remember: The 99% tax liability bonification and the 99% reduction in the taxable base are separate benefits. They are not simply two discounts that can be added together. A tax adviser should calculate the inheritance using the applicable rules.
What Other Costs Are Involved When Inheriting a Property in Marbella?
Even when tax reductions apply, inheriting a property in Spain can involve additional expenses.
These costs are worth considering before deciding whether to keep, rent or sell the property.
| Potential expense | What to consider |
|---|---|
| Inheritance Tax | Depends on the beneficiary, inheritance value and applicable tax benefits. |
| Municipal Plusvalía | Local tax relating to the increase in urban land value. |
| Notary fees | Costs associated with formalising the inheritance deed. |
| Land Registry fees | Required to register the new ownership. |
| Legal and tax advice | Professional assistance with inheritance documentation and tax declarations. |
| Community fees | Outstanding or ongoing payments to the owners’ community. |
| Utilities and insurance | Electricity, water, property insurance and other running costs. |
| Mortgage or other debts | Outstanding financial obligations associated with the property. |
The final cost will vary from one inheritance to another. Several beneficiaries, outstanding debts or international documentation can make the process more complicated.
Is the cadastral value the same as the property’s market value?
No. This is an important distinction.
The cadastral value is an administrative valuation used for Spanish tax purposes. It is not necessarily what a property would achieve on the open market.
The market value depends on factors such as:
- Location and neighbourhood.
- Property size and layout.
- Condition and quality of construction.
- Orientation and natural light.
- Sea, mountain or golf views.
- Outdoor space and communal facilities.
- Current buyer demand.
For example, two apartments with similar cadastral values in Marbella could have very different market values because of their location, condition and features.
If you inherit a property, it is worth understanding both figures before deciding what to do next.
Can Foreigners and Non-Residents Inherit Property in Marbella?
Yes. Foreign nationals and non-residents can inherit property in Spain. You do not need to be a Spanish citizen or live in Marbella to receive an inheritance.
However, international inheritances can involve additional legal and tax considerations.
For example, a British homeowner living in Marbella may leave a property to children who live in the UK. The inheritance could involve Spanish property law, Spanish tax obligations and questions about which country’s inheritance law applies.
Here are some important points for international beneficiaries.
Do you need an NIE number?
Beneficiaries will generally need a Spanish tax identification number to complete the relevant tax and property registration procedures.
Foreign nationals who do not already have an NIE should seek advice on obtaining the appropriate identification before completing the inheritance formalities.
Which country’s inheritance law applies?
Under the EU Succession Regulation (Regulation EU 650/2012), the law of the country where the deceased was habitually resident at the time of death generally governs the succession as a whole.
However, a person can choose the law of their nationality to govern their succession in a valid will.
There are exceptions and important practical considerations, particularly for people with assets in several countries.
You can read more in the European Commission’s information on cross-border successions.
Do non-residents still have to pay Spanish inheritance tax?
Yes, Spanish tax obligations can still arise when someone inherits Spanish property, even if they live abroad.
The applicable rules depend on the circumstances of the deceased and the beneficiary, including their tax residence and the relevant regional legislation.
International beneficiaries should seek advice from a Spanish tax professional who understands cross-border inheritances.
What Is the Deadline for Declaring an Inherited Property in Marbella?
Missing an inheritance tax deadline can result in interest, surcharges and other complications.
There are separate declaration requirements for Municipal Plusvalía and Spanish Inheritance Tax.
| Tax | Standard deadline | Extension |
|---|---|---|
| Municipal Plusvalía | Six months from the date of death | Can be extended to one year if requested |
| Spanish Inheritance Tax | Six months from the date of death | A further six months may be requested under the applicable rules |
Municipal Plusvalía deadline
Article 110 of Spain’s Local Finance Act establishes a six-month declaration period for transfers resulting from death.
The taxpayer can request an extension of up to one year in total.
The extension must be requested in accordance with the applicable procedure.
See Article 110 of the Local Finance Act.
Spanish Inheritance Tax deadline
The general deadline for submitting Spanish Inheritance Tax is also six months from the date of death.
An extension of a further six months can be requested, subject to the applicable requirements and application deadline.
Do not assume that requesting an extension for one tax automatically extends the deadline for the other.
Our advice: Contact a Spanish lawyer or tax adviser as soon as possible after a death. They can help you identify the relevant deadlines, prepare the paperwork and apply for any available benefits.
Seven Common Mistakes to Avoid When Inheriting Property in Spain
Inheriting a property can be complicated, particularly when family members live in different countries or are unfamiliar with the Spanish system.
These are some of the mistakes worth avoiding.
| Common mistake | Why it matters |
|---|---|
| Assuming the 95% reduction applies to every property | The municipal benefit has specific eligibility conditions. |
| Confusing Plusvalía with Inheritance Tax | They are separate taxes with different calculations. |
| Missing the declaration deadlines | Late submissions can lead to additional costs and complications. |
| Assuming non-residents are exempt | Spanish tax obligations can still apply to foreign beneficiaries. |
| Treating cadastral value as market value | The two figures serve different purposes. |
| Selling without checking the tax implications | A sale can trigger additional taxes and reporting obligations. |
| Ignoring ongoing property costs | Community fees, maintenance and utilities can add up, especially for owners living abroad. |
Taking professional advice early can help avoid these problems and make the process much more straightforward.
Can You Sell an Inherited Property in Marbella?
Not everyone who inherits a property wants to keep it.
Some beneficiaries decide to move into the property, while others prefer to rent it out or sell it. If several family members inherit the same home, selling can sometimes be the simplest way to divide the proceeds.
Before putting an inherited property on the market, there are several things to consider.
Make sure the inheritance is formally completed
The inheritance must be properly accepted and the ownership documentation put in order.
The inheritance deed and relevant tax documentation are typically required to register the new ownership with the Land Registry.
A property should not simply be put on the market without first checking that the legal ownership position allows the sale to proceed.
Understand the property’s market value
An inherited property’s cadastral value is not the same as its market value.
If you are considering selling, it is important to understand what similar properties in the area are currently achieving.
In Marbella, location can make a considerable difference.
A property on the Golden Mile, for example, will attract a different buyer profile from an apartment in San Pedro Alcántara or a villa in Nueva Andalucía.
Condition, orientation, views, outdoor space and the facilities within the development can all influence the asking price.
Consider the tax implications of selling
Selling an inherited property can create further tax obligations.
Capital Gains Tax may be payable if the property increases in value between the value used for inheritance tax purposes and the eventual sale value.
There may also be another Municipal Plusvalía calculation on the sale, depending on the circumstances.
If you have benefited from Andalucía’s 99% habitual-residence reduction, remember that the three-year retention requirement may also be relevant.
It is worth speaking to a tax adviser before agreeing a sale price or signing a contract.
Should you sell, rent or keep the property?
There is no single right answer. The decision depends on the property’s condition, location, potential rental income, and ongoing ownership costs.
For beneficiaries who live abroad, managing a property in Marbella can also involve practical considerations.
Understanding the local property market and the costs involved can help you decide which option makes the most sense.
If you are considering selling, a local estate agent can help you understand the property’s current market value and the level of demand in your area.
What Should You Do If You Inherit a Property in Marbella?
Although every inheritance is different, the process generally involves several steps.
| Step | What you need to do |
|---|---|
| 1. Obtain the documents | Obtain the death certificate, certificate of last wills and a copy of the will, if one exists. |
| 2. Identify the beneficiaries | Establish who is legally entitled to inherit the property. |
| 3. Check the property details | Obtain the cadastral information and Land Registry extract (Nota Simple). |
| 4. Get professional advice | Ask a Spanish lawyer or tax adviser to review the inheritance and identify available tax benefits. |
| 5. Formalise the inheritance | Complete the necessary inheritance documentation before a notary. |
| 6. Declare the taxes | Submit the relevant Inheritance Tax and Plusvalía declarations within their respective deadlines. |
| 7. Register the property | Arrange registration in the new owner’s name. |
| 8. Decide what to do next | Consider whether to live in, rent out or sell the property. |
Having the right advice from the beginning can make the process considerably easier, particularly when beneficiaries live outside Spain.
Frequently Asked Questions About Inheriting Property in Marbella
Can I inherit a property in Marbella without living in Spain?
Yes. Foreign nationals and non-residents can inherit property in Spain. However, they must comply with the relevant Spanish tax, documentation and registration requirements.
Can I inherit a property in Marbella if I live in the UK?
Yes. UK residents can inherit property in Marbella. Spanish inheritance tax and municipal Plusvalía obligations may apply, even if the beneficiary lives outside Spain. The wider tax position may also involve UK inheritance tax, depending on the circumstances.
Does Marbella offer 95% inheritance tax relief?
Marbella offers a municipal Plusvalía reduction of up to 95% for qualifying inherited properties. This is not a 95% reduction in all inheritance taxes. Andalucía has separate Inheritance Tax benefits for qualifying beneficiaries.
Does the 95% reduction apply to second homes?
The municipal benefit is subject to habitual-residence conditions. A holiday home, second home or investment property will not automatically qualify.
What happens if several family members inherit the same property?
Each beneficiary receives their share of the inheritance. Their respective tax positions and eligibility for reductions should be checked. If the beneficiaries decide to sell, they should agree how the sale and proceeds will be handled.
Do I have to sell an inherited property in Spain?
No. You can generally keep the property, live in it or rent it out, subject to the applicable legal and tax requirements. However, you should check any retention conditions attached to tax benefits before selling.
Can I rent out an inherited property in Marbella?
Yes, provided the property and rental arrangement comply with the relevant Spanish and Andalusian regulations. You should also consider community rules, local rental requirements and any applicable tax obligations.
Can I sell an inherited property without registering it in my name?
The inheritance must be legally formalised, and the ownership documentation must be in order. The usual process involves accepting the inheritance, dealing with the relevant taxes and registering the new ownership. A Spanish lawyer can advise on the specific requirements.
How long do I have to declare an inheritance in Spain?
The general deadline for Spanish Inheritance Tax is six months from the date of death, with a possible extension of a further six months if requested under the applicable rules. Municipal Plusvalía also has a six-month deadline, which can be extended to one year.
Inheriting a Property in Marbella: Understand Your Options
Inheriting a property in Marbella can be a valuable opportunity, but it also comes with legal, financial and administrative responsibilities.
The municipal Plusvalía reduction and Andalucía’s Inheritance Tax benefits can make a significant difference to the costs involved. However, eligibility depends on individual circumstances, and it is important to meet the relevant deadlines.
Whether you intend to keep the property, rent it out or put it on the market, understanding its value and the local property market is a good place to start.
If you have inherited a property in Marbella and are considering selling, Marbella Homes to Love can help you understand the local market, assess your property’s potential value and explore your options.
Get in touch with our team to discuss your property.
About Marbella Homes to Love
Marbella Homes to Love is a boutique real estate agency specialising in residential property across Marbella, Estepona and Benahavís. We help international buyers and property owners understand the local market and make informed property decisions.
Editorial information
- First published: November 2026
- Last updated: November 2026
- Legal review: To be completed by a qualified Spanish property lawyer or tax adviser.
- Information sources: Marbella Town Hall, Junta de Andalucía, Spanish legislation and European Union succession guidance.
This article provides general information and is not a substitute for individual legal or tax advice.